Gold Coast property: House Values have Biggest Jump in 15 years as Property and Development Booms

Gold Coast property: House Values have Biggest Jump in 15 years as Property and Development Booms

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  • Post published:May 16, 2021
  • Post category:News

Article originally published on Gold Coast Bulletin

GOLD Coast property prices have recorded their biggest single-year jump since the heights of the mid-2000s boom, new data reveals.

CoreLogic data released this week shows property values increased 15 per cent in the year to April 2021, the highest since 2006 and behind the record-setting 1986 and 2001.

And the price of family homes is set to remain high as the amount of developable land dwindles.

Real estate industry figures now say the Gold Coast’s property industry could be set up for a decade of high values if the 2032 Olympic Games bid is successful.

CoreLogic head of research Tim Lawless said housing values were increasing faster than units.

“If you look at the Gold Coast market, it’s a tale of two cities, with house values by far rising the fastest with a quarterly growth of 9.2 per cent, while units went up 5.4 per cent in the same time,” he said.

The city had the 15th largest jump in property values in the past year — Sydney was top — while the growth rate in the first three months of 2021 placed the Coast seventh.

According to the data the average Gold Coast property is worth $638,000, higher than Brisbane’s $538,000.

However, the Glitter Strip remains comfortably below Melbourne’s $745,000 and Sydney’s $951,000.

CoreLogic data released last week revealed that price growth in the Gold Coast market had slowed slightly from 2.5 per cent to 1.7 per cent in the 28 days to April 25.

Real estate veteran Michael Kollosche said the increasing values matched the strong demand for Gold Coast property.

“The numbers spiked particularly in the first quarter based on the strong transactions over the Christmas and New Year period with the southern buyers,” he said.

“This created a lot of demand as well as us already having the highest levels of interstate migration in 15 years.

“If we get the 2032 Olympic Games then that will likely set the market up for the next decade.”

The value surge coincides with the COVID-19 lockdown and subsequent property boom which has seen thousands of NSW and Victorian residents relocate to the Gold Coast.

More than $750m worth of units have changed hands in less than six months.

Data released in March by consulting firm Urbis revealed a lack of available units because the number of apartments built between 2018 and 2020 had dropped.

In 2020, 22 new projects launched containing a total of 1411 apartments.

In 2019, 24 projects were built with 2164 units.